02/27/2010

Problems with the Goods inwards department

The goods receipt process is an intrinsic element in many organizations – it controls the flow of goods and materials into the organization.
However as with any business process its not usually without problems - a poorly performing goods in process can result in various issues some of which can be significant and can affect both cost and production time Typical problems include

1/ Poor prioritization – inability to process key materials at the right time – where the goods receipt team does not have sufficient capacity it can become a real bottleneck.

2/ Failure to stop poor quality materials entering the organization – perhaps insignificant at the time of processing but further down the line – during the manufacturing process – it can be a killer!

3/ Ineffective management of early deliveries – one of the roles of the goods receipt process is to control cost entering the organization – allowing deliveries of materials that are not yet required (delivered early against Purchase order required date) can add significant and unnecessary cost to the organization.
For more information on the process check out our article on the goods receipt process